Indian Sponge Market Daily Updates

Today, central and east India based manufacturers have further increase sponge offers by INR 50-150/MT due to less number of sellers and better demand. While, south offers remain unmoved due to weak semis movement in the market.

Currently, 78-80 FeM sponge C-DRI prices are hovering in the range of INR 10,800-12,700/MT and P-DRI within INR 10,750-12,300/MT ex-plant.

A sponge supplier from south India quoted, “ As of now, trade activities are weak due to low demand, but offers are almost firm on account of less availability of material”.

Key highlights

1. Few large P-DRI manufacturers in Raipur are not selling their material in the market due to plant maintenance and increase in captive consumption. As a result, P-DRI prices have risen continuously, which is supporting C-DRI and DR-CLO prices. During the current week, offers have increased by INR 400/MT despite falling billet offers.
2. Sponge offers in Durgapur remain strong due to healthy bookings by induction furnace operators. A sponge manufacturer said that Shyam Steel, an integrated plant in the region, is purchasing sponge from the open market. Today, the plant has purchased C-DRI at around INR 11,800/MT.
3. Ingot manufacturers in Odisha reported that sponge manufacturers are unwilling to sell material in local market due to high premium to sell material in outside states. Moreover, sponge makers also reported that they are selling material mostly on CST billing at INR 11,000-11,300/MT than to sell material on VAT billing, which priced upto INR 10,800/MT for the same grade material.
4. Karnataka based Apple Industries, who produces 8,000-9,000 MT billet per month and also a merchant seller, is offering billet at INR 21,000/MT and 80 FeM C-DRI lump at INR 11,800/MT ex-plant.
5. Shiv Shakti Steel, a 200 TPD sponge manufacturer in Hyderabad, sold 80 FeM C-DRI lump at INR 12,700/MT ex-plant. Also, the company is offering billet at INR 21,500/MT ex-plant. While, the same grade P-DRI is being offered by Cauvery Iron & Steel at INR 12,300/MT ex-plant.
6. Prakash Sponge, a prime grade sponge maker in Karnataka, sold 80 FeM C-DRI lump at INR 11,900/MT. Few deals were concluded with Kerela based Minar Ispat . Sunvik Steels, an another large sponge seller, is offering 82 FeM C-DRI at INR 12,500/MT ex-plant.
7. As per sources, Vizag Steel (VSP) sold about 500 MT billet of 160*160 mm to Chennai based Kamakshi Steels at INR 24,100/MT (delivered to plant, including all). While, Chennai based local manufacturers are trading 100*100 mm billet at INR 24,500/MT (including 12.5% ED, excluding VAT/CST).

Domestic sponge offers as on 21 Jul’16

Prices in INR/MT
Source: SteelMint Research